Flutter Entertainment must sell some of its holdings at Fundael to support the IPO
Flutter Entertainment (LON:FLTR) confirmed its plan to list the small shares of Fundael’s holdings on Monday.
The Irish gambling company that owns Ladbrokes, Coral and Bwin said “we will regularly assess the organization and capital structure to assess the best way to position ourselves to realize the group’s strategy.” I did.
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Peel Hunt analysts value Fanduel at around £12 billion, Flutter’s market capitalization of around £27 billion, while Draftkings, a small rival to Fanduel, said, “Supports the argument that Fanduel is undervalued. It looks like this,” he added that it is trading at a market value of $28.5 billion.
Russ Mold, AJ Bell’s investment director, thinks the list makes sense for Flutter Entertainment.
“Flutter potentially lists the Sportsbook and the Daily Fantasy Sports Betting Business Funduel, making perfect sense for two reasons.”
“First, it could be much higher than it was attributable to its operation as part of a flutter group.
“Secondly, this is definitely the most exciting part of that group and it seems logical to want to use the positive momentum to give investors the opportunity to invest in this bit. It also helps to have already had peers listed in the form of Draftkings.
Mold adds that the company must sell some of its holdings at Fanduel to support the IPO.
“Flutter will have to sell some of its holdings at Fanduel to promote an IPO. On the other hand, this means giving up some of its potential future profits, but borrowings are also being made. You can also generate a significant amount of cash to help you repay the payment.
“Importantly, Flutter shows that they will only sell a small portion of Fanduel to support IPOs. That means that Fanduel will still play a key role within the larger group and access to fundraising. It suggests that it can be done.
